Experts from finance, regulators, fintech, banking, consumer research and the law share their attitudes to open banking
Opening up data held inside banks through APIs will sharpen competition to the benefit of customers and force the pace of innovation. And it will make everyone redouble their focus on understanding what their customers want and design services available to them wherever they are. Here's what the experts say.
"Open banking remedies have the potential to be game changers. The CMA's aim is to expose banks' most profitable customers to competition.
"If this remedy takes hold, we should see the unbundling of the services that make up current accounts so different players can provide them individually. That could include new payment services, short‑term credit lines that can be transferred in automatically before a customer goes into overdraft and withdrawn again when they're back in credit and services that can automatically shift large credit balances to places where they will earn a higher return.
"Access to current account data and the ability to initiate payments via APIs will make all these possible. Some services like this exist but they rely on screen scraping and there's strong evidence that most people don't want to hand over their personal banking details to sign up. If instead they're able to ask their bank to send their information to the new provider, they're not disclosing their credentials to anybody."
"The development of this single API in the UK under the CMA remedies could give many of the UK banks a head start when it comes to PSD2, compared with the European banks that haven't had the open banking organisation. It's similar to Faster Payments ten or 12 years ago – that process forced the banks to get together and it ultimately gave them a head start.
"We'll change how we open up our APIs so our customers can give third parties access to their PayPal balance and transaction history. We look at it as an Account Servicing Payment Services Provider. But that's not to say we can't think of PayPal as a third party to another PSP's customers.
"We might use third‑party data to create a more seamless onboarding process or customer experiences within the app that could include onboarding or making and receiving payments. This won't take us into core banking activities but PayPal does have a banking licence in Europe."
of consumers are willing to exchange data for a product or service they value
of consumers were positively influenced when sharing their data unlocked data-driven benefits or they received special promotions